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Deferred Salary

All articles tagged with #deferred salary

sports2 years ago

Shohei Ohtani's Unconventional Contract: $680M Deferred

Shohei Ohtani has signed a historic 10-year, $700 million contract with the Los Angeles Dodgers, with $680 million of the deal being deferred. Ohtani's decision to defer the majority of his earnings was motivated by helping the Dodgers sign other players and made easier by his lucrative off-the-field endorsements. The deferred money will be paid to Ohtani between 2034 and 2043. The Dodgers' competitive balance tax payroll will be approximately $46 million per season, putting their combined cost of Ohtani, Freddie Freeman, and Mookie Betts towards the payroll at around $100 million annually. The Angels bid farewell to Ohtani, acknowledging his generational talent and contributions to the franchise.

sports2 years ago

The Legacy of Bobby Bonilla Day: A Baseball Trendsetter Still Collecting Big Money

On July 1, the New York Mets continue to pay former MLB All-Star Bobby Bonilla over $1.19 million as part of a deferred salary arrangement that will last until 2035. The Mets signed Bonilla to a five-year contract in 1991, but after being traded away, they released him in 2000. Believing they would profit from investments with Bernie Madoff, the Mets agreed to defer Bonilla's salary with 8% interest. However, Madoff's Ponzi scheme collapsed, causing Bonilla's $5.9 million salary to swell to $29.8 million. Bonilla's deferred salary with the Mets is the most famous July 1 payment in baseball, and he also has a second deferred salary agreement with the Baltimore Orioles. Other notable deferred salary plans include Ken Griffey Jr., Manny Ramirez, Matt Holliday, Chris Davis, Bret Saberhagen, Rafael Devers, Rafael Soriano, Max Scherzer, and Stephen Strasburg.